LEASES

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

LEASES

LEASES

As of March 31, 2023, the Company has a non-cancelable operating lease for its corporate office, which is located in Lake Forest, Illinois (the “Lake Forest Lease”). On May 1, 2023, the Company amended the Lake Forest Lease to reduce the size of leased premises and extend the term of the lease through December 31, 2030. In connection with the Zyla Merger, the Company assumed an operating lease for offices in Wayne, Pennsylvania, which terminated in February 2022.

Prior to the Company’s corporate headquarters relocation in 2018, the Company had leased its previous corporate office in Newark, California (the “Newark Lease”), which terminated at the end of November 2022. The Newark lease was partially subleased through the lease term of November 2022. Operating lease costs and sublease income related to the Newark facility are accounted for in Other gain in the Company’s Consolidated Statements of Comprehensive (Loss) Income. During the three months ended March 31, 2022, the Company recognized a gain of $0.6 million from the early termination and settlement of a Newark facility sublease.

The following table reflects lease expense and income for the three months ended March 31, 2023 and 2022 (in thousands):

		Three Months Ended March 31,
	Financial Statement Classification	2023		2022
Operating lease cost	Selling, general and administrative expenses	$	39	$	40
Operating lease cost	Other gain	—		148
Total lease cost		$	39	$	188
Sublease Income	Other gain	$	—	$	775

The following table reflects supplemental cash flow information related to leases for the three months ended March 31, 2023 and 2022 (in thousands):

	Three Months Ended March 31,
	2023		2022
Cash paid for amounts included in measurement of liabilities:
Operating cash flows from operating leases	$	104	$	530

The following table reflects supplemental balance sheet information related to leases as of March 31, 2023 and December 31, 2022 (in thousands):

	Financial Statement Classification	March 31, 2023		December 31, 2022
Liabilities
Current operating lease liabilities	Other current liabilities	$	306	$	401
Total lease liabilities		$	306	$	401

LEASES

LEASES

As of March 31, 2023, the Company has a non-cancelable operating lease for its corporate office, which is located in Lake Forest, Illinois (the “Lake Forest Lease”). On May 1, 2023, the Company amended the Lake Forest Lease to reduce the size of leased premises and extend the term of the lease through December 31, 2030. In connection with the Zyla Merger, the Company assumed an operating lease for offices in Wayne, Pennsylvania, which terminated in February 2022.

Prior to the Company’s corporate headquarters relocation in 2018, the Company had leased its previous corporate office in Newark, California (the “Newark Lease”), which terminated at the end of November 2022. The Newark lease was partially subleased through the lease term of November 2022. Operating lease costs and sublease income related to the Newark facility are accounted for in Other gain in the Company’s Consolidated Statements of Comprehensive (Loss) Income. During the three months ended March 31, 2022, the Company recognized a gain of $0.6 million from the early termination and settlement of a Newark facility sublease.

The following table reflects lease expense and income for the three months ended March 31, 2023 and 2022 (in thousands):

		Three Months Ended March 31,
	Financial Statement Classification	2023		2022
Operating lease cost	Selling, general and administrative expenses	$	39	$	40
Operating lease cost	Other gain	—		148
Total lease cost		$	39	$	188
Sublease Income	Other gain	$	—	$	775

The following table reflects supplemental cash flow information related to leases for the three months ended March 31, 2023 and 2022 (in thousands):

	Three Months Ended March 31,
	2023		2022
Cash paid for amounts included in measurement of liabilities:
Operating cash flows from operating leases	$	104	$	530

The following table reflects supplemental balance sheet information related to leases as of March 31, 2023 and December 31, 2022 (in thousands):

	Financial Statement Classification	March 31, 2023		December 31, 2022
Liabilities
Current operating lease liabilities	Other current liabilities	$	306	$	401
Total lease liabilities		$	306	$	401